Opening the mail to find a “preapproved” offer on a credit card can feel like being welcomed into an exclusive club with lots of benefits. In reality, you may not even make the membership list. Read more
... But while “preapproval” implies exclusivity, it doesn’t have anything to do with the quality of the card’s benefits. ... In fact, some preapproved cards have rates far higher than the current average of 15%.
What’s more, being a candidate doesn’t make you a winner: ... the rejection rate for preselected applicants can reach as high as 30%, even among relatively affluent borrowers.
A variety of factors contribute to those “Sorry, no card” decisions, including having a relatively high ratio of debt to income or a spotty employment history.
Responding to the credit card offer can affect one's credit score, so one is wise to respond selectively to the pre-approval offers. This is especially important if there are major purchases on the horizon, because often the best interest rates on these are based on the individual's credit score.